Getting on the property ladder can feel like a daunting task—especially when saving for a deposit. But if you’re a first-time buyer in the UK, there’s good news: low deposit mortgages are still very much an option in 2025, with new products and schemes designed to help you take that first step.
What Is a Low Deposit Mortgage?
A low deposit mortgage typically allows you to put down less than 10% deposit.
These types of mortgages can be helpful to first-time buyers who may not have access to large amounts of savings or financial help from family members.
What’s New in 2025?
- Mortgage Guarantee Scheme Ending: The government-backed scheme that supported 5% deposit mortgages is set to end on 30th June 2025. While it helped many buyers, there’s currently no confirmed replacement.
- 100% Mortgages Return: Some lenders have introduced no deposit mortgages, aimed at buyers with strong credit and stable incomes.
- 1% Deposit Mortgages: Some lenders now offer 99% mortgages, meaning you could buy a home with as little as a £5,000 deposit (the minimum monetary amount).
- Falling Deposit Requirements: Thanks to changes in affordability rules allowing for larger loan amounts, the average deposit for first-time buyers is expected to drop over the next few years.
Who Can Apply?
Low deposit mortgages are generally available to:
- First-time buyers
- Those who have been renting for over 12 months
- Those with a good credit history
- Applicants with stable income and employment
- Buyers looking for properties under £600,000
Some lenders may also require you to pass stricter affordability checks, especially if you have less than a 5% deposit.
Pros and Cons
Pros:
- Get on the property ladder sooner
- Keep more of your savings for moving costs or renovations
- Access to fixed-rate deals for long-term stability
Cons:
- Higher monthly repayments
- Limited lender options
- Risk of negative equity if property values fall
Our Final Thoughts
If you’re a first-time buyer in 2025, low deposit mortgages could be your ticket to homeownership. With new products like no deposit mortgages and 1% deposit options, there are more ways than ever to buy your first home—even without a large savings pot.
To speak to a mortgage adviser to explore your options and find the best deal for your circumstances, click here to book.
https://onerooffinancial.co.uk/contact/
Your home may be repossessed if you do not keep up repayments on your mortgage.
Blog written 10/06/2025
The information contained within this blog was correct at the time of publication (10/06/2025) and is subject to change.
